True / False Questions
1.Identifying information relevant to a particular business decision requires an understanding of both quantitative and qualitative considerations.
2.All incremental revenue or incremental costs are relevant.
3.Even though costs, revenues, and other factors do not vary among possible courses of action, they may be relevant to a decision.
4.In making a decision, management will look thoroughly at both relevant and irrelevant data.
5.In order to be consistent with IASB Standards, U.S. GAAP now requires that borrowing costs on assets that require a substantial period to bring them to a marketable condition be expensed immediately.
6.Differential costs are those that are the same among alternatives.
7.Nonfinancial considerations are relevant in decision making.
8.Incremental revenue is relevant in decision making.
9.The term "out-of-pocket cost" is often used to describe costs which have not yet been incurred and which may vary among alternative courses of action.
10.Opportunity costs are irrelevant in decision making.